Riley Horne's Profile
It is an interesting product group…I’ve seen these dynamics elsewhere, specifically in HVAC (I know, weird parallel). Essentially they take a product that is treated as a commodity (vents) and throw a bunch of R&D testing at it and demonstrate small product improvements can change their overall energy consumption. The ROI is staggeringly obvious and they grew like crazy throughout the states selling a “commodity” product.
Great, now I’ve got a ridiculous craving for a #2 Animal style.
One question I’ve always had about In-N-Out was whether the company could exist as is without it being a privately owned, majority shareholder business. It’s brand strength across North America is insane – They opened up a one hour, 1,000 burger pop up shop in Toronto last year and had a 3 block line by 10am. I just don’t think any investor could refrain from leveraging a brand with that much short term potential, be it through outsourcing supply lines on the back end or franchising on the front end. They are growing, but it is likely one of the most pure examples of organic growth…its refreshing.